AXA, ClimateSeed Launch Climate Insurance for Mangroves

AXA and ClimateSeed have  introduced a climate insurance policy targeting San Crisanto mangrove forests to counter deforestation and shield against hurricane damage.

Mangrove forests in Mexico have been grappling with deforestation and hurricane damage, impacting local populations. However, this new insurance policy aims to protect fishermen restoring swamps in the Yucatan Peninsula.

Globally, mangrove forests have declined by 35% in the last 20 years, with some areas witnessing a 70% reduction due to human activities and natural climate events.

These forests play a crucial role in combating climate change, acting as carbon sinks, reducing coastal flooding, and supporting biodiversity.

“Following Hurricanes Otis and Lidia, small businesses enrolled in Ayuda Express Huracán received MX$10,000 (US$586) within 72 hours, while over 1,430 farmers were granted MX$2,200 (US$129) per hectare damaged during Hurricane Agatha in 2022", says Daniel Bandle, CEO, AXA Seguros Mexico.

San Crisanto, home to a 150 Mayan family fishing community, relies on 800 hectares of mangrove swamps for economic activity through restoration financed by carbon credits and ecotourism.

The insurance policy shields against hurricanes, providing up to US$100,000 compensation triggered by impacts, aiding adaptation efforts. 

ClimateSeed collaborates with organizations globally to accelerate climate action and awareness. Meanwhile Grupo AXA, a global entity, safeguards over 95 million policyholders, including 6.6 million individuals in Mexico.